Defense Inventory: DOD Could Better Manage Parts With Limited Manufacturing Sources
NSIAD-90-126
Published: Aug 16, 1990. Publicly Released: Sep 18, 1990.
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Highlights
Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) efforts to manage spare and repair parts with limited manufacturing sources, under the Department of Defense's (DOD) Diminishing Manufacturing Sources and Material Shortages Program.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should request the DOD Inspector General to follow up on each of the services' actions and proposals to determine whether the services are providing adequate management of the program. |
Closed – Implemented
DOD plans to ask the Inspector General to follow-up if steps identified in the DOD action plan are not implemented in a timely manner. Services are currently implementing the action plan.
|
| Department of Defense | The Secretary of Defense should direct the services to: (1) properly implement DOD policy to provide oversight of the program; and (2) develop parts requirements for those with diminishing sources based on past usage and valid projections of future needs. |
Closed – Implemented
A DOD ad hoc working group developed an action plan and the plan is currently being implemented.
|
| Defense Logistics Agency | The Director, DLA, should direct the Defense Electronics Supply Center to issue adequate guidance for its item managers to ensure correct calculations of the quantity when making life-of-type buys. |
Closed – Implemented
DOD believes that the existing guidance cannot be made more specific because the "buys" are calculated on a case-by-case basis. GAO disagreed.
|
| Defense Logistics Agency | The Director, DLA, should direct the Defense Electronic Supply Center (DESC) to determine which parts need special long-term storage protection, ascertain what protection is required, and provide it as necessary. |
Closed – Implemented
DLA will issue instructions to depots to emphasize proper storage. DOD pointed out that determining the required level of protection was hard due to lack of standards.
|
| Defense Logistics Agency | The Director, DLA, should direct DESC to establish a program to periodically test samples of on-hand diminishing sources parts to evaluate the quantities of stock in inventory. |
Closed – Implemented
DESC testing resources have been increased and within 18 months more testing should be possible.
|
| Defense Logistics Agency | The Director, DLA, should direct DESC to ensure that the quality of parts is satisfactory through quality assurance tests or other means before it accepts them. |
Closed – Implemented
DESC has developed a capability to test parts on receipt. Testing will be expanded within resource limits.
|
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Topics
Aircraft componentsDefense procurementElectronic equipmentInternal controlsInventory control systemsMilitary cost controlMilitary inventoriesSpare partsTestingMilitary forces